Nautilus 2001 Annual Report Download - page 75

SURVIVAL OF REPRESENTATIONS AND WARRANTIES. Borrower understands and agrees that Lender, without independent
investigation, is relying upon the above representations and warranties in extending Loan Advances to Borrower. Borrower further agrees that
the foregoing representations and warranties shall be continuing in nature and shall remain in full force and effect until such time as Borrower's
Indebtedness shall be paid in full, or until this Agreement shall be terminated in the manner provided above, whichever is the last to occur.
AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, while this Agreement is in effect, Borrower will:
LITIGATION. Promptly inform Lender in writing of (a) all material adverse changes in Borrower's financial condition, and (b) all existing and
all threatened litigation, claims, investigations, administrative proceedings or similar actions affecting Borrower or any Guarantor which could
materially affect the financial condition of Borrower or the financial condition of any Guarantor.
Financial Records. MAINTAIN ITS BOOKS AND RECORDS IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES, APPLIED ON A CONSISTENT BASIS, AND PERMIT LENDER TO EXAMINE AND AUDIT BORROWER'S BOOKS
AND RECORDS AND HAVE ITS MANAGEMENT MEET WITH LENDER AT ALL REASONABLE TIMES.
Financial Statements. FURNISH LENDER WITH, AS SOON AS AVAILABLE, BUT IN
NO EVENT LATER THAN NINETY (90) DAYS AFTER THE END OF EACH FISCAL YEAR (A) BORROWER'S BALANCE SHEET
AND INCOME STATEMENT FOR THE YEAR ENDED, AUDITED BY A CERTIFIED PUBLIC ACCOUNTANT SATISFACTORY TO
LENDER AND (B) A COPY OF BORROWER'S 10K FILED WITH THE S.E.C.; AND AS SOON AS AVAILABLE, BUT IN NO EVENT
LATER THAN FORTY-FIVE (45) DAYS AFTER THE END OF EACH FISCAL QUARTER, (A) BORROWER'S BALANCE SHEET AND
PROFIT AND LOSS STATEMENT FOR THE PERIOD ENDED, PREPARED AND CERTIFIED AS CORRECT TO THE BEST
KNOWLEDGE AND BELIEF BY BORROWER'S CHIEF FINANCIAL OFFICER OR OTHER OFFICER OR PERSON ACCEPTABLE TO
LENDER AND (B) A COPY OF BORROWER'S 10Q FILED WITH THE S.E.C. ALL FINANCIAL REPORTS REQUIRED TO BE
PROVIDED UNDER THIS AGREEMENT SHALL BE PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES, APPLIED ON A CONSISTENT BASIS, AND CERTIFIED BY BORROWER AS BEING TRUE AND
CORRECT.
Additional Information. FURNISH SUCH ADDITIONAL INFORMATION AND
STATEMENTS, LISTS OF ASSETS AND LIABILITIES, AGINGS OF RECEIVABLES AND PAYABLES, INVENTORY SCHEDULES,
BUDGETS, FORECASTS, TAX RETURNS, AND OTHER REPORTS WITH RESPECT TO BORROWER'S FINANCIAL CONDITION
AND BUSINESS OPERATIONS AS LENDER MAY REQUEST FROM TIME TO TIME.
Financial Covenants and Ratios. Comply with the following covenants and ratios:
Net Worth Ratio. MAINTAIN A RATIO OF TOTAL LIABILITIES TO
TANGIBLE NET WORTH OF LESS THAN 1.25 to 1.00.
Current Ratio. MAINTAIN A RATIO OF CURRENT ASSETS TO CURRENT
LIABILITIES IN EXCESS OF 2.00 to 1.00.
THE FOLLOWING PROVISIONS SHALL APPLY FOR PURPOSES OF DETERMINING COMPLIANCE WITH THE FOREGOING
FINANCIAL COVENANTS AND RATIOS:
Compliance with the foregoing ratios/amounts shall be determined by calculating the ratios/amounts as of the end of each quarter. EXCEPT AS
PROVIDED ABOVE, ALL COMPUTATIONS MADE TO DETERMINE COMPLIANCE WITH THE REQUIREMENTS CONTAINED IN
THIS PARAGRAPH SHALL BE MADE IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, APPLIED
ON A CONSISTENT BASIS, AND CERTIFIED BY BORROWER AS BEING TRUE AND CORRECT.
Insurance. MAINTAIN FIRE AND OTHER RISK INSURANCE, PUBLIC LIABILITY INSURANCE, AND SUCH OTHER INSURANCE
AS LENDER MAY REQUIRE WITH RESPECT TO BORROWER'S PROPERTIES AND OPERATIONS, IN FORM, AMOUNTS,
COVERAGES, AND WITH INSURANCE COMPANIES REASONABLY ACCEPTABLE TO LENDER. BORROWER, UPON REQUEST
OF LENDER, WILL DELIVER TO LENDER FROM TIME TO TIME THE POLICIES OR CERTIFICATES
2002. EDGAR Online, Inc.